Loan-to-Value (LTV) is the size of your mortgage as a percent of the total property value.

The higher your deposit, the lower your LTV.
If you put down a 10% deposit on your home, that’s a 90% mortgage, or 90% LTV.

A lower LTV means lower interest rates. That’s because a bigger deposit means less risk for lenders.

A little math

Say you want to buy a property worth £250,000.
You have a deposit of £25,000, so you need to take out a mortgage of £225,000.

That makes your LTV:
225,000 / 250,000 = 0.90
x 100 = 90% LTV

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